The global insect feed market is expected to grow at a CAGR of over 11.7% from 2022 to 2026 – ResearchAndMarkets.com

DUBLIN–(BUSINESS WIRE)–The “Insect Food Market – Growth, Trends, Impact of COVID-19, and Forecast (2022-2027)” report has been added to from ResearchAndMarkets.com offer.

The insect feed market is expected to register a CAGR of 11.7% during the forecast period (2022-2027).

The COVID-19 pandemic has disrupted the operation of several markets, including insect feed during the initial lockdown. Insect feeding for aquaculture has been negatively affected primarily due to the decline in international seafood trade as restrictions on the fishing industry have reduced yield and production. Additionally, global demand for seafood from restaurants and the hospitality industry has also dropped dramatically as the shutdowns have led to stay-at-home orders, restaurants and other food establishments closing. The insect feed industry today faces challenges such as commercial scale production compared to conventional animal feed products. However, factors such as high insect feed conversion rate, low production area requirements and favorable government policies are driving the insect feed market. This is further expected to boost the market in the coming years.

Asia-Pacific dominated the global market, holding the largest share, and Europe is expected to be the fastest growing market in the coming years. In Asia-Pacific, increasing meat consumption has driven demand for nutritious insect food in recent years. Along with this, investments by insect feed companies in the region have fueled the growth of the market. Likewise, in Europe, government initiatives coupled with extensive poultry maintenance by farmers are expected to boost the insect feed market revenue over the forecast period.

By animal type, the aquaculture segment led the market among other animals in 2021. Rising demand for farmed fish globally has led to higher prices for meal and fish fish oil. Hence, insect feed is a viable high-protein option for aquaculture feed, thereby boosting the market.

Main market trends

High insect feed conversion rate

The world population is expected to reach 9 billion by 2050. Population growth and increasing demand for protein-rich foods from livestock, poultry and fish pose serious food security challenges for the future. Hence, the demand for production and consumption of edible insects is increasing due to their high nutritional value and low risk of zoonotic disease transmission.

Insects contain more protein and less fat compared to traditional meats, such as poultry and livestock. They also emit less greenhouse gases and ammonia than conventional livestock and can be grown on organic waste. This drives the growth of the market. In addition, insects are efficient in converting food into protein. For example, crickets need 12 times less feed than cattle, four times less feed than sheep, and half as much feed as pigs and broiler chickens to produce the same amount of protein. Therefore, the breeding of these insects and their use as animal feed has become important in both developed and developing countries.

The need for grains and protein foods will likely increase as the demand for meat increases. For example, cattle are fed about 6 kg of vegetable protein to obtain 1 kg of animal protein. Feed-to-meat conversion rates (amount of feed needed to produce a 1 kg increase in weight) vary widely depending on the types of animals and the production practices used.

Asia-Pacific dominates the market

In Asia-Pacific, increasing meat consumption has driven demand for nutritious insect food in recent years. Along with this, investments by insect feed companies in the region have fueled the growth of the market. For example, in 2017, Protix partnered with China-based Buhler Insect Technology Solutions to improve insect food production in the country, where Buhler, with the help of the former, set up a pilot plant for treat fly larvae and mealworms for animal feed. This has led companies to develop new forms of insect feed to provide high-protein nutrition to livestock. Additionally, local Chinese companies, such as Haocheng Mealworms Inc. and Guangzhou Wuliang Biotechnology Co. Ltd, produce insect feed rather than relying on US soybean imports for animal feed. This has declined due to the trade war between the United States and China. Also, recently in 2019, a crop-eating pest damaged many forage crops in the country. Such developments in the country are fueling the insect feed market revenue in China. Hence, the region is expected to experience robust growth owing to the growing demand for insect feed in various countries such as China, South Korea, and Japan, coupled with increased demand for animal protein.

Competitive landscape

The global insect feed market is highly fragmented in nature in 2021 as the majority of companies are new to the market studied and hold only a small fraction of the market share. According to the companies featured in the study, Europe has the highest number of major players, followed by Asia-Pacific. Alltech Coppens, Protix, Enterra Feed Corporation, Ynsect, and Enviroflight are some of the major companies that accounted for the majority of the global insect feed market in 2021. Acquisitions, partnerships, and expansions are some of the significant strategies adopted by insect food. producing companies for their research support and for commercialization purposes. For example, Enviroflight, Alltech Coppens and Protix are the three companies that have successfully adopted these strategies.

Companies cited

  • Alltech Coppens

  • Multiple box

  • nextProtien

  • EnviroFlight

  • Protix

  • InnovaFeed

  • small farms

  • Yinsect

  • AgriProtien

  • Enterra Feed Corporation

  • hexafly

  • Entofood

For more information on this report, visit https://www.researchandmarkets.com/r/rwh2lg